<SEC-DOCUMENT>0000949377-11-000354.txt : 20110805
<SEC-HEADER>0000949377-11-000354.hdr.sgml : 20110805
<ACCEPTANCE-DATETIME>20110805093308
ACCESSION NUMBER:		0000949377-11-000354
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20110922
FILED AS OF DATE:		20110805
DATE AS OF CHANGE:		20110805
EFFECTIVENESS DATE:		20110805

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ROYCE FOCUS TRUST INC
		CENTRAL INDEX KEY:			0000825202
		IRS NUMBER:				592876580
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-05379
		FILM NUMBER:		111012376

	BUSINESS ADDRESS:	
		STREET 1:		C/O ROYCE & ASSOCIATES, LLC
		STREET 2:		745 FIFTH AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10151
		BUSINESS PHONE:		2125084578

	MAIL ADDRESS:	
		STREET 1:		C/O ROYCE & ASSOCIATES, LLC
		STREET 2:		745 FIFTH AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10151

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ROYCE GLOBAL TRUST INC
		DATE OF NAME CHANGE:	19961203

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ALL SEASONS GLOBAL FUND INC
		DATE OF NAME CHANGE:	19950803

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICAS ALL SEASON FUND INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>e97898_def14a.htm
<TEXT>
<html>
<body>
<p align="center"><font face="Times New Roman" size="2">SCHEDULE 14A INFORMATION</font></p>
<p><font face="Times New Roman" size="2">Proxy Statement Pursuant to Section 14(a)
 of the Securities Exchange Act of 1934<br>(Amendment No.)</font></p>
<p><font face="Times New Roman" size="2">Filed by the Registrant [ ]<br>Filed by
 a Party other than the Registrant [ ]<br>Check the appropriate box:<br>[ ]&#160;&#160; Preliminary
 Proxy Statement<br>[ ]&#160;&#160; Confidential, for Use of the Commission Only (as permitted
 by Rule 14a-6(e)(2))<br>[X] Definitive Proxy Statement<br>[ ] &#160;&#160;Definitive Additional
 Materials<br>[ ]&#160;&#160; Soliciting Material Pursuant to Section 240.14a-11(c) or Section
 240.14a-12</font></p>
<p align="center"><font face="Times New Roman" size="2"><u>ROYCE FOCUS TRUST, INC.</u><br>(Name of Registrant as Specified In Its Charter)</font></p>
<p align="center"><font face="Times New Roman" size="2">(Name of Person(s) Filing
 Proxy Statement if other than the Registrant)</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="3" align="left"><font face="Times New Roman" size="2">
Payment of Filing Fee (Check the appropriate box):</font></td>
</tr>
<tr>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2">[X]</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">No fee required.</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">[ ]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Fee computed
 on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1) Title of
 each class of securities to which transaction applies:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2) Aggregate
 number of securities to which transaction applies:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">3) Per unit
 price or other underlying value of transaction computed pursuant to Exchange Act
 Rule 0-11 (Set forth the amount on which the filing fee is calculated and state
 how it was determined):</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">4) Proposed
 maximum aggregate value of transaction:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">5) Total fee
 paid:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">[ ]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Fee paid previously
 with preliminary materials.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">[ ]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Check box
 if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and
 identify the filing for which the offsetting fee was paid previously. Identify the
 previous filing by registration statement number, or the Form or Schedule and the
 date of its filing.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1) Amount
 Previously Paid:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2) Form, Schedule
 or Registration Statement No.:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">3) Filing
 Party:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">4) Date filed:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<div><hr noshade size="3" color="gray"></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="times new roman" size="2"><b>ROYCE FOCUS TRUST, INC.</b></font></p>
<p align="center"><font face="times new roman" size="2"><b>745 Fifth Avenue<br>New York, New York 10151</b></font></p>
<div><hr size="1" color="#000000" noshade width="15%"></div>
<p align="center"><font face="times new roman" size="2"><b>NOTICE OF ANNUAL MEETING OF STOCKHOLDERS</b></font></p>
<div><hr size="1" color="#000000" noshade width="15%"></div>
<p align="center"><font face="Times New Roman" size="2"><b>TO BE HELD ON SEPTEMBER 22, 2011</b></font></p>
<p><font face="Times New Roman" size="2">To the Stockholders of:<br><br>ROYCE FOCUS TRUST, INC.</font></p>
<p align="justify" style="text-indent:33px;"><font face="Times New Roman" size="2">NOTICE IS
 HEREBY GIVEN that the Annual Meeting of Stockholders (the &#147;Meeting&#148;) of
 ROYCE FOCUS TRUST, INC. (the &#147;Fund&#148;) will be held at the offices of the
 Fund, 745 Fifth Avenue, New York, New York 10151 on Thursday, September 22, 2011,
 at 3:00 p.m. (Eastern time), for the following purposes:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1.</font></td>
<td valign="bottom" colspan="3" align="justify"><font face="Times New Roman" size="2">
To elect four Directors to the Fund&#146;s Board:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="4%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">(i)</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">two Directors
 to be elected by the holders of the Fund&#146;s Common Stock and its 6.00% Cumulative
 Preferred Stock (the &#147;Preferred Stock&#148;), voting together as a single class,
 and</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(ii)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">two Directors
 to be elected only by the holders of the Fund&#146;s Preferred Stock voting as a
 separate class; and</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>

<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2.</font></td>
<td valign="bottom" colspan="3" align="justify"><font face="Times New Roman" size="2">
To transact such other business as may properly come before the Meeting or any adjournment
 thereof.</font></td>
</tr>
</table>
<p align="justify" style="text-indent:33px;"><font face="Times New Roman" size="2">The Board
 of Directors of the Fund has set the close of business on July 14, 2011 as the record
 date for determining those stockholders entitled to vote at the Meeting or any adjournment
 thereof, and only holders of record at the close of business on that day will be
 entitled to vote.</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>IMPORTANT</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2"><b>To save
 the Fund the expense of additional proxy solicitation, please mark your instructions
 on the enclosed Proxy, date and sign it and return it in the enclosed envelope (which
 requires no postage if mailed in the United States), even if you expect to be present
 at the Meeting. You may also provide your vote via telephone or the Internet by
 following the instructions on the proxy card or Notice of Internet Availability
 of Proxy Materials, please take advantage of these prompt and efficient voting options.
</b> The accompanying Proxy is solicited on behalf of the Board of Directors, is
 revocable and will not affect your right to vote in person in the event that you
 attend the Meeting.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="28%" valign="bottom" align="left"><font face="Times New Roman" size="2">By order of
 the Board of Directors,</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">John E. Denneen</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Secretary
</i></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">August 5,
 2011</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2"><b>IMPORTANT NOTICE REGARDING
 THE AVAILABILITY OF<br>PROXY MATERIALS FOR THE ANNUAL MEETING OF<br>STOCKHOLDERS
 TO BE HELD ON SEPTEMBER 22, 2011<br><br>THE NOTICE, PROXY STATEMENT AND PROXY CARD
 FOR<br>THE FUND ARE AVAILABLE AT WWW.PROXYVOTE.COM</b></font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>PROXY STATEMENT</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>ROYCE FOCUS TRUST,
 INC.<br>745 Fifth Avenue<br>New York, New York 10151<br><br>ANNUAL MEETING OF
 STOCKHOLDERS<br>September 22, 2011<br><br>INTRODUCTION</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The enclosed
 Proxy is solicited on behalf of the Board of Directors for use at the Annual Meeting
 of Stockholders (the &#147;Meeting&#148;) of Royce Focus Trust, Inc. (the &#147;Fund&#148;), to be held at the offices of the Fund, 745 Fifth Avenue, New York, New York
 10151, on Thursday, September 22, 2011, at 3:00 p.m. (Eastern time) and at any adjournments
 thereof. The approximate mailing date of this Proxy Statement is August 5, 2011.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">All properly executed Proxies received prior to the Meeting will be voted
 at the Meeting in accordance with the instructions marked thereon or otherwise as
 provided therein. Unless instructions to the contrary are marked, Proxies will be
 voted &#147;FOR&#148; the election of the Director nominees of the Fund.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">You may revoke your Proxy at any time before it is exercised by sending written instructions
 to the Secretary of the Fund at the Fund&#146;s address indicated above or by filing
 a new Proxy with a later date, and any stockholder attending the Meeting may vote
 in person, whether or not he or she has previously filed a Proxy.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The cost
 of soliciting proxies will be borne by the Fund, which will reimburse brokerage
 firms, custodians, nominees and fiduciaries for their expenses in forwarding proxy
 material to the beneficial owners of the Fund&#146;s shares. Some officers and
 employees of the Fund and/or Royce &#038; Associates, LLC (&#147;R&#038;A&#148;),
 the Fund&#146;s investment adviser, may solicit proxies personally and by telephone,
 if deemed desirable. Stockholders vote at the Meeting by casting ballots (in person
 or by proxy) which are tabulated by one or two persons, appointed by the Board of
 Directors before the Meeting, who serve as Inspectors and Judges of Voting at the
 Meeting and who have executed an Inspectors&#146; and Judges&#146; Oath.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Board of Directors of the Fund has set the close of business on July 14, 2011
 as the record date (the &#147;Record Date&#148;) for determining those stockholders
 entitled to vote at the Meeting or any adjournment thereof, and only holders of
 record at the close of business on that day will be entitled to vote. Stockholders
 on the Record Date will be entitled to one vote for each outstanding share of Common
 Stock and 6.00% Cumulative Preferred Stock</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">(the &#147;Preferred Stock&#148; and, together with the Common Stock, &#147;Stock&#148; or &#147;shares&#148;) held (proportional voting rights for fractional shares
 held), with no shares having cumulative voting rights.</FONT></P>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">As of the
 Record Date, there were 20,073,083 shares of Common Stock and 1,000,000 shares
 of Preferred Stock of the Fund outstanding. The following persons were known to
 the Fund to be beneficial owners or owners of record of 5% or more of its outstanding
 shares of Common Stock or Preferred Stock as of the Record Date:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Class/Series</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Amount and</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Percent of</b></font></td>
</tr>
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Name and Address of Owner</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>of Stock</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Nature of Ownership</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Class/Series</u></b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Charles M.
 Royce<br>c/o Royce &#038; Associates, LLC<br>745 Fifth Avenue<br> New York, NY 10151</font></td>
<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="15%" valign="TOP" align="center"><font face="Times New Roman" size="2">Common</font></td>
<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="12%" valign="bottom" align="left"><font face="Times New Roman" size="2">1,454,472
 shares&#151;Beneficial (sole voting and investment power)</font></td>
<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="15%" valign="top" align="center"><font face="Times New Roman" size="2">7.25%</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">W. Whitney
 George<br>c/o Royce &#038; Associates, LLC<br>745 Fifth Avenue<br> New York, NY 10151</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="TOP" align="center"><font face="Times New Roman" size="2">Common</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">3,037,785
 shares&#151;Beneficial* (sole voting and investment power)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">15.13%</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Cede &#038;
 Co.**<br>Depository Trust Company<br>P.O. Box #20</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="TOP" align="center"><font face="Times New Roman" size="2">Common</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="TOP" align="left"><font face="Times New Roman" size="2">19,352,944 shares&#151;<br>Record**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">96.41%</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Bowling Green
 Station<br>New York, NY 10028</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">6.00%<BR> Preferred</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1,000,000
 shares&#151;<br>Record**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">100%</font></td>
</tr>
</table>
<BR>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="3"><hr size="1" color="#000000" noshade WIDTH="10%" ALIGN="left"></td>
</tr>
<tr>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">*</font></td>
<td WIDTH="1%" ><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">Includes 914,763
 shares held by W. Whitney George Family Foundation, a charitable foundation
 established by Mr. George and members of his family.</font></p></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2"> Shares
 held by brokerage firms, banks and other financial intermediaries on behalf of beneficial
 owners are registered in the name of Cede &#038; Co.</font></p></td>
</tr>
</table>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Board
 of Directors knows of no business other than that stated in Proposal 1 of the Notice
 of Meeting that will be presented for consideration at the Meeting. If any other
 matter is properly presented at the Meeting or any adjournment thereof, it is the
 intention of the persons named on the enclosed proxy card to vote in accordance
 with their best judgment.</font></p>
<p align="center"><font face="Times New Roman" size="2">2</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>SUMMARY OF VOTING RIGHTS ON PROXY PROPOSALS</b></font></p>
<table border="1" bordercolor="#000000" cellpadding="8" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Proposal</b></font></td>
<td width="33%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Common Stockholders</b></font></td>
<td width="33%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Preferred Stockholders</b></font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2"><b>Election of Directors</b></font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Common and
 Preferred Stockholders, voting together as a single class, elect two Directors</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Preferred
 Stockholders, voting as a separate class, elect two additional Directors</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2"><b>PROPOSAL 1: ELECTION OF DIRECTORS</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">At the Meeting,
 four members of the Board of Directors of the Fund will be elected. The holders
 of both Common Stock and Preferred Stock, voting together as a single class, are
 entitled to elect six directors. These six directors are divided into three classes,
 each class having a term of three years. Each year the term of office of one class
 will expire. Patricia W. Chadwick and Richard M. Galkin have each been nominated
 by the Board of Directors for a three-year term to expire at the Fund&#146;s 2014
 Annual Meeting of Stockholders or until their successors are duly elected and qualified.
 The classes of Directors are indicated below:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>CLASS
 III DIRECTORS TO SERVE UNTIL 2014 ANNUAL MEETING OF STOCKHOLDERS</b></u></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Patricia W.
 Chadwick</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Richard M.
 Galkin</font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>CLASS
 II DIRECTORS TO SERVE UNTIL 2013 ANNUAL MEETING OF STOCKHOLDERS</b></u></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Mark R. Fetting</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Arthur S.
 Mehlman</font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>CLASS
 I DIRECTORS TO SERVE UNTIL 2012 ANNUAL MEETING OF STOCKHOLDERS</b></u></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Charles M.
 Royce</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">G. Peter O&#146;Brien</font></td>
</tr>
</table>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The holders
 of Preferred Stock, voting as a separate class, are entitled to elect two directors
 to serve until the next Annual Meeting of Stockholders and until their successors
 are duly elected and qualified or until their earlier resignation or removal. The
 Board of Directors has nominated the following two persons to continue as Directors
 of the Fund, to be elected by holders of the Preferred Stock: Stephen L. Isaacs
 and David L. Meister.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Each of these persons has agreed to serve if elected,
 and the Fund&#146;s management has no reason to believe that any of them will be
 unavailable for service as a Director. However, if any of them become unwilling
 or unable to serve, the persons named in the accompanying Proxy will vote for the
 election of such other persons, if any, as the Board of Directors may nominate.</font></p>
<p align="center"><font face="Times New Roman" size="2">3</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Certain biographical
 and other information concerning the existing Directors and the nominees who are
 &#147;interested persons&#148; as defined in the Investment Company Act of 1940,
 as amended (the &#147;Investment Company Act&#148;), of the Fund, including their
 designated classes, is set forth below.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>
Name, Address* and<br>Principal Occupations<br><u>During Past Five Years</u>**</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Age</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Positions<br>With<br><u>the Fund</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Length<br>of Time<br><u>Served</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Current<br>Term<br><u>Expires</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Elected<br><u>By</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Number
 of<br>Portfolios<br>in Fund<br>Complex<br><u>Overseen</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Other<br>Public<br>Company<br><u>Directorships</u></b></font></td>
</tr>
<tr>
<td colspan="15" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Charles
 M. Royce***<br>President, Co-Chief Investment Officer and Member of Board of Managers
 of Royce &#038; Associates, LLC (&#147;R&#038;A&#148;), investment adviser to the
 Fund, Royce Micro-Cap Trust, Inc. (&#147;RMT&#148;), Royce Value Trust, Inc. (&#147;RVT&#148;), The Royce Fund (&#147;TRF&#148;) and Royce Capital Fund (&#147;RCF&#148;)
 (the Fund, RMT, RVT, TRF and RCF collectively, &#147;The Royce Funds&#148;).</font></p></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="5%" valign="top" align="center"><font face="Times New Roman" size="2">71</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Class I Director<br>and<br>President&#134;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">1986</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">2012</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Common <br>and<br>Preferred</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="12%" valign="top" align="center"><font face="Times New Roman" size="2">35</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">TICC<br>Capital Corp.</font></td>
</tr>
<tr>
<td colspan="15" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">
 Mark
 R. Fetting***<br>President, Chief Executive Officer, Chairman and Director of Legg
 Mason, Inc. Mr. Fetting&#146;s prior business experience includes having served
 as a Member of the Board of Managers of R&#038;A; Senior Executive Vice President
 of Legg Mason, Inc.; Division President and Senior Officer of Prudential Financial
 Group, Inc. and related companies; Partner, Greenwich Associates; and Vice President,
 T. Rowe Price Group, Inc.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">56</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Class II
<br>Director</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2001</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2013</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Common
<br>and<br>Preferred</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">51<br>
(Director/Trustee of all Royce Funds consisting of 35 portfolios; Director/Trustee
 of the Legg Mason Family of Funds consisting of 16 portfolios)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Legg Mason, Inc.</font></td>
</tr>
</table>
<br>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="3"><hr size="1" color="#000000" noshade width="10%" align="left"></td>
</tr>
<tr>
<td width="2%" valign="top" align="right"><font face="Times New Roman" size="2">*</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">Mr. Royce&#146;s address is c/o Royce &#038; Associates, LLC, 745 Fifth Avenue, New York,
 New York 10151. Mr. Fetting&#146;s address is c/o Legg Mason, Inc., 100 International
 Drive, Baltimore, Maryland 21202.</font></p></td>
</tr>
<tr>
<td valign="top" align="right"><font face="Times New Roman" size="2">**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">Each of
 the Directors or nominees is also a director/trustee of certain other investment
 companies for which R&#038;A acts as an investment adviser.</font></p></td>
</tr>
<tr>
<td valign="top" nowrap align="right"><font face="Times New Roman" size="2">***</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">&#147;Interested
 person,&#148; as defined in the Investment Company Act, of the Fund.</font></p></td>
</tr>
<tr>
<td valign="top" align="right"><font face="Times New Roman" size="2">&#134;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">Elected
 by and serves at the pleasure of the Board of Directors.</font></p></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">4</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->

<p><font face="Times New Roman" size="2"><b>Interested Persons</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Messrs. Royce
 and Fetting are &#147;interested persons&#148; of the Fund within the meaning of
 Section 2(a)(19) of the Investment Company Act due to the positions they hold with
 R&#038;A and its affiliate Legg Mason, respectively, and their stock ownership in
 Legg Mason. There are no family relationships between any of the Fund&#146;s Directors
 and officers.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Certain biographical and other information concerning the existing
 Directors and nominees who are not &#147;interested persons,&#148; as defined in
 the Investment Company Act, of the Fund, including their designated classes, is
 set forth on the following pages.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>
Name, Address* and<br>Principal Occupations<br><u>During Past Five Years</u>**</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Age</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Positions<br>With<br><u>the Fund</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Length<br>of Time<br><u>Served</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Current<br>Term<br><u>Expires</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Elected<br><u>By</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Number
 of<br>Portfolios<br>in Fund<br>Complex<br><u>Overseen</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Other
<br>Public<br>Company<br><u>Directorships</u></b></font></td>
</tr>
<tr>
<td colspan="15" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Patricia
 W. Chadwick Consultant and President of Ravengate Partners LLC (since 2000).</font></p></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="5%" valign="top" align="center"><font face="Times New Roman" size="2">62</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Class III<br>Director</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">2010</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">2011</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Board of<br>Directors</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">35</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" valign="top" align="center"><font face="Times New Roman" size="2">Wisconsin
<br>Energy<br>Corp. and<br>ING Mutual<br>Funds</font></td>
</tr>
<tr>
<td colspan="15" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Richard
 M. Galkin Private investor. Mr. Galkin&#146;s prior business experience includes
 having served as President of Richard M. Galkin Associates, Inc., telecommunications
 consultants, President of Manhattan Cable Television (a subsidiary of Time Inc.),
 President of Haverhills Inc. (another Time Inc. subsidiary), President of Rhode
 Island Cable Television and Senior Vice President of Satellite Television Corp.
 (a subsidiary of Comsat).</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">73</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Class III
<br>Director</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1986</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2011</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Common
<br>and<br>Preferred</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">35</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">5</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>
Name, Address* and<br>Principal Occupations<br><u>During Past Five Years</u>**</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Age</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Positions<br>With<br><u>the Fund</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Length<br>of Time<br><u>Served</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Current<br>Term<br><u>Expires</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Elected<br><u>By</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Number
 of<br>Portfolios<br>in Fund<br>Complex<br><u>Overseen</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Other<br>Public<br>Company<br><u>Directorships</u></b></font></td>
</tr>
<tr>
<td colspan="15" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Stephen
 L. Isaacs President of The Center for Health and Social Policy (since September
 1996); Attorney and President of Health Policy Associates, Inc., consultants. Mr.
 Isaacs&#146;s prior business experience includes having served as Director of Columbia
 University Development Law and Policy Program and Professor at Columbia University
 (until August 1996).</font></p></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">71</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Director</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">1986</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">2011</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Preferred<br>only</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" valign="top" align="center"><font face="Times New Roman" size="2">35</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
<tr>
<td colspan="15" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Arthur
 S. Mehlman Director of The League for People with Disabilities, Inc.; Director of
 University of Maryland Foundation (non-profits). Formerly: Director of Municipal
 Mortgage &#038; Equity, LLC (from October 2004 to April 2011); Director of University
 of Maryland College Park Foundation (non-profit) (from 1998 to 2005); Partner, KPMG
 LLP (international accounting firm) (from 1972 to 2002); Director of Maryland Business
 Roundtable for Education (from July 1984 to June 2002).</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">69</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Class II
<br>Director</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2004</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2013</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Common<br>
 and<br>Preferred</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">51<br>
(Director/ Trustee of all Royce Funds consisting of 35 portfolios;
 Director/ Trustee of the Legg Mason Family of Funds consisting of 16 portfolios)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">6</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>
Name, Address* and<br>Principal Occupations<br><u>During Past Five Years</u>**</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Age</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Positions<br>With<br><u>the Fund</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Length<br>of Time<br><u>Served</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Current<br>Term<br><u>Expires</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Elected<br><u>By</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Number
 of<br>Portfolios<br>in Fund<br>Complex<br><u>Overseen</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Other
<br>Public<br>Company<br><u>Directorships</u></b></font></td>
</tr>
<tr>
<td colspan="15" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">David
 L. Meister Consultant. Chairman and Chief Executive Officer of The Tennis Channel
 (from June 2000 to March 2005). Mr. Meister&#146;s prior business experience includes
 having served as Chief Executive Officer of Seniorlife.com, a consultant to the
 communications industry, President of Financial News Network, Senior Vice President
 of HBO, President of Time-Life Films and Head of Broadcasting for Major League Baseball.</font></p></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">71</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Director</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">1986</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">2011</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Preferred<br>only</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" valign="top" align="center"><font face="Times New Roman" size="2">35</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
<tr>
<td colspan="15" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">G.
 Peter O&#146;Brien Director, Bridges School (since 2006); Trustee Emeritus of Colgate
 University (since 2005); Board Member of Hill House, Inc. (since 1999). Formerly:
 Trustee of Colgate University (from 1996 to 2005); President of Hill House, Inc.
 (from 2001 to 2005); and Managing Director/Equity Capital Markets Group of Merrill
 Lynch &#038; Co. (from 1971 to 1999).</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">65</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Class I<br>Director</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2001</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2012</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Common <br>and<br>Preferred</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">51<br>
(Director/ Trustee of all Royce Funds consisting of 35 portfolios;
 Director/ Trustee of the Legg Mason Family of Funds consisting of 16 portfolios)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">TICC<br>
Capital<br>Corp.</font></td>
</tr>
</table>
<br>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="3"><hr size="1" color="#000000" noshade align="left" width="10%"></td>
</tr>
<tr>
<td width="2%" valign="top" align="right"><font face="Times New Roman" size="2"> *</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">Ms. Chadwick&#146;s and Messrs. Galkin, Isaacs, Mehlman, Meister and O&#146;Brien&#146;s address
 is c/o Royce &#038; Associates, LLC, 745 Fifth Avenue, New York, New York 10151.</font></p></td>
</tr>
<tr>
<td valign="top" align="right"><font face="Times New Roman" size="2">**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">Each of
 the Directors or nominees is a director/trustee of certain other investment companies
 for which R&#038;A acts as an investment adviser. Ms. Chadwick and Messrs. Galkin,
 Isaacs, Mehlman, Meister and O&#146;Brien are each a member of the Fund&#146;s Audit
 Committee and its Nominating Committee.</font></p></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">7</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify" style="text-indent:33px;"><font face="Times New Roman" size="2">Additional
 information about each Director follows (supplementing the information provided
 in the table above) that describes some of the specific experiences, qualifications,
 attributes or skills that each Director possesses which the Board of Directors (the
 &#147;Board&#148;) believes has prepared them to be effective Directors.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2"><i>Charles
 M. Royce</i> - In addition to his tenure as a Director/Trustee of The Royce Funds,
 Mr. Royce serves as the President, Co-Chief Investment Officer and as a member of
 the Board of Managers of R&#038;A, having been President of R&#038;A since 1972.
 Mr. Royce has over 40 years of investment and business experience.</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2"><i>Mark
 R. Fetting</i> - In addition to his tenure as a Director/Trustee of The Royce Funds
 and of the Legg Mason Family of Funds, Mr. Fetting serves as the Chairman, President
 and Chief Executive Officer of Legg Mason, Inc. and has served as a member of the
 Board of Managers of R&#038;A. Mr. Fetting has over 30 years of investment and
 business experience.</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2"><i>Patricia
 W. Chadwick</i> - In addition to her tenure as a Director/Trustee of The Royce Funds,
 Ms. Chadwick is designated as an Audit Committee Financial Expert. Ms. Chadwick
 has over 30 years of investment and business experience, including extensive experience
 in the financial sector and as a consultant to business and non-profit entities.
 In addition, Ms. Chadwick has served on the boards of a variety of public and private
 companies and non-profit entities, including currently serving on the boards of
 two public companies.</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2"><i>Richard
 M</i>. <i>Galkin</i> - In addition to his tenure as a Director/Trustee of The Royce
 Funds, Mr. Galkin has served as the Chairman of the Board&#146;s Audit Committee
 for more than 15 years, acting as liaison between the Board and the Fund&#146;s
 independent registered public accountants and as co-Chairman of the Board&#146;s
 Nominating Committee. Mr. Galkin has over 40 years of business experience, including
 extensive experience in the telecommunications industry.</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2"><i>Stephen
 L</i>. <i>Isaacs</i> - In addition to his tenure as a Director/Trustee of The Royce
 Funds, Mr. Isaacs serves as Attorney and President of a private consulting firm.
 Mr. Isaacs has over 40 years of business and academic experience, including extensive
 experience related to public health and philanthropy.</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2"><i>Arthur
 S</i>. <i>Mehlman</i> - In addition to his tenure as a Director/Trustee of The Royce
 Funds and of the Legg Mason Family of Funds, Mr. Mehlman is designated as an Audit
 Committee Financial Expert.</font></p></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">8</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">Mr. Mehlman
 has over 35 years of business experience, including as Partner of an international
 accounting firm and a Director for various private companies and non-profit entities.</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="4%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2"><i>David
 L. Meister</i> - In addition to his tenure as a Director/Trustee of The Royce Funds,
 Mr. Meister has over 40 years of business experience, including extensive experience
 as an executive officer in and consultant to the communications industry.</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2"><i>G. Peter
 O&#146;Brien</i> - In addition to his tenure as a Director/Trustee of The Royce
 Funds and of the Legg Mason Family of Funds, Mr. O&#146;Brien serves as co-Chairman
 of the Board&#146;s Nominating Committee. Mr. O&#146;Brien has over 35 years of
 business experience, including extensive experience in the financial sector. In
 addition, Mr. O&#146;Brien has served on the boards of public companies and non-profit
 entities.</font></p></td>
</tr>
</table>
<p align="justify" style="text-indent:33px;"><font face="Times New Roman" size="2">The Board
 believes that each Director&#146;s experience, qualifications, attributes and skills
 should be evaluated on an individual basis and in consideration of the perspective
 such Director brings to the entire Board, with no single Director, or particular
 factor, being indicative of Board effectiveness. However, the Board believes that
 Directors need to have the ability to critically review, evaluate, question and
 discuss information provided to them, and to interact effectively with Fund management,
 service providers and counsel, in order to exercise effective business judgment
 in the performance of their duties; the Board believes that their members satisfy
 this standard. Experience relevant to having this ability may be achieved through
 a Director&#146;s educational background; business, professional training or practice,
 public service or academic positions; experience from service as a board member
 (including the Board of the Fund) or as an executive of investment funds, public
 companies or significant private or non-profit entities or other organizations;
 and/or other life experiences. The charter for the Board&#146;s Nominating Committee
 contains certain other specific factors considered by the Nominating Committee in
 identifying and selecting Director candidates (as described below).</font></p>
<p align="justify" style="text-indent:33px;"><font face="Times New Roman" size="2">To assist
 them in evaluating matters under federal and state law, the Directors are counseled
 by their own independent legal counsel, who participates in Board meetings and interacts
 with R&#038;A, and also may benefit from information provided by R&#038;A&#146;s
 internal counsel; both Board and R&#038;A&#146;s internal counsel have significant
 experience advising funds and fund board members. The Board and its committees
 have the ability to engage other experts as appropriate. The Board evaluates its
 performance on an annual basis.</font></p>
<p align="center"><font face="Times New Roman" size="2">9</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->

<p><font face="Times New Roman" size="2"><b>Board Composition and Leadership Structure
</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Investment
 Company Act requires that at least 40% of a Fund&#146;s Directors not be &#147;interested
 persons&#148; (as defined in the Investment Company Act) of the Fund and as such
 are not affiliated with the Fund&#146;s investment adviser (&#147;Independent Directors&#148;). To rely on certain exemptive rules under the Investment Company Act, a
 majority of a Fund&#146;s Directors must be Independent Directors, and for certain
 important matters, such as the approval of investment advisory agreements or transactions
 with affiliates, the Investment Company Act or the rules thereunder require the
 approval of a majority of the Independent Directors. Currently, 75% of the Fund&#146;s Directors are Independent Directors. The Board does not have a chairman,
 but the President, Mr. Royce, an interested person of the Fund, acts as chairman
 at the Board meetings. The Independent Directors have not designated a lead Independent
 Director, but the Chairman of the Audit Committee, Mr. Galkin, generally acts as
 chairman of meetings or executive sessions of the Independent Directors and, when
 appropriate, represents the views of the Independent Directors to management. The
 Board has determined that its leadership structure is appropriate in light of the
 services that Royce and its affiliates provide to the Fund and potential conflicts
 of interest that could arise from these relationships.</font></p>
<p><font face="Times New Roman" size="2"><b>Audit Committee Report</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Board
 of Directors has a standing Audit Committee (the &#147;Audit Committee&#148;), which
 consists of the Independent Directors who also are &#147;independent&#148; as defined
 in the listing standards of the New York Stock Exchange. The current members of
 the Audit Committee are Patricia W. Chadwick, Richard M. Galkin, Stephen L. Isaacs,
 Arthur S. Mehlman, David L. Meister and G. Peter O&#146;Brien. Mr. Galkin serves
 as Chairman of the Audit Committee and Ms. Chadwick and Mr. Mehlman have been designated
 as Audit Committee Financial Experts, as defined under Securities and Exchange Commission
 (&#147;SEC&#148;) regulations.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The principal
 purposes of the Audit Committee are to (i) assist Board oversight of the (a) integrity
 of the Fund&#146;s financial statements; (b) independent accountants&#146; qualifications
 and independence; and (c) performance of the Fund&#146;s independent accountants
 and (ii) prepare, or oversee the preparation of any audit committee report required
 by rules of the SEC to be included in the Fund&#146;s proxy statement for its annual
 meeting of stockholders. The Board of Directors has adopted an Audit Committee Charter
 for the Fund which is attached hereto as Exhibit A.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Audit
 Committee also has (i) received written disclosures and the letter required by Independence
 Standards Board Standard No. 1 from Tait, Weller &#038; Baker (&#147;TW&#038;B&#148;),
 independent auditors for the Fund, and (ii) discussed certain matters required to
 be discussed under the requirements of The Public Company Accounting Oversight Board
 with TW&#038;B. The Audit</font></p>
<p align="center"><font face="Times New Roman" size="2">10</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">Committee has considered whether the provision
 of non-audit services by the Fund&#146;s independent auditors is compatible with maintaining their independence.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">At its meeting
 held on February 16, 2011, the Audit Committee reviewed and discussed the audit
 of the Fund&#146;s financial statements as of December 31, 2010 and for the fiscal
 year then ended with Fund management and TW&#038;B. Had any material concerns arisen
 during the course of the audit and the preparation of the audited financial statements
 mailed to stockholders and included in the Fund&#146;s 2010 Annual Report to Stockholders,
 the Audit Committee would have been notified by Fund management or TW&#038;B. The
 Audit Committee received no such notifications. At the same meeting, the Audit Committee
 recommended to the Board of Directors that the Fund&#146;s audited financial statements
 be included in the Fund&#146;s 2010 Annual Report to Stockholders.</font></p>
<p><font face="Times New Roman" size="2"><b>Nominating Committee</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Board
 of Directors has a Nominating Committee composed of the six Independent Directors,
 namely Ms. Chadwick and Messrs. Galkin, Isaacs, Mehlman, Meister and O&#146;Brien.
 Messrs. Galkin and O&#146;Brien serve as co-Chairmen of the Nominating Committee.
 The Board of Directors has adopted a Nominating Committee Charter which is attached
 hereto as Exhibit B.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Nominating
 Committee is responsible for identifying and recommending to the Board of Directors
 individuals believed to be qualified to become Board members in the event that a
 position is vacated or created. The Nominating Committee will consider Director
 candidates recommended by stockholders. In considering potential nominees, the
 Nominating Committee will take into consideration (i) the contribution which the
 person can make to the Board, with consideration given to the person&#146;s business
 and professional experience, education and such other factors as the Committee may
 consider relevant, including but not limited to whether a potential nominee&#146;s
 personal and professional qualities and attributes would provide a beneficial diversity
 of skills, experience and/or perspective to the Board; (ii) the character and integrity
 of the person; (iii) whether or not the person is an &#147;interested person&#148;
 as defined in the Investment Company Act and whether the person is otherwise qualified
 under applicable laws and regulations to serve as a Director or Independent Director
 of the Fund; (iv) whether or not the person has any relationships that might impair
 his or her independence, such as any business, financial or family relationships
 with Fund management, the investment adviser of the Fund, Fund service providers
 or their affiliates; (v) whether or not the person is financially literate pursuant
 to the New York Stock Exchange&#146;s audit committee membership standards; (vi)
 whether or not<br></font></p>
<p align="center"><font face="Times New Roman" size="2">11</font></p>
<hr size="3" color="gray" noshade>
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<p align="justify"><font face="Times New Roman" size="2">
the person serves on boards of, or is otherwise affiliated with, competing financial
 service organizations or their related investment company complexes; (vii) whether
 or not the person is willing to serve as, and willing and able to commit the time
 necessary for the performance of the duties of, a Director of the Fund; and (viii)
 whether or not the selection and nomination of the person would be in the best interest
 of the Fund in light of the requirements of the Fund&#146;s retirement policies.
 While the Nominating Committee does not have a formal policy regarding diversity,
 as noted above, it may consider the diversity of skills, experience and/or perspective
 a potential nominee will bring to the Board as part of its evaluation of the contribution
 such potential nominee will make to the Board. Such factors will be considered
 in light of the other factors described above and in the context of the Board&#146;s
 existing membership at the time such potential candidate is considered.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">To have a
 candidate considered by the Nominating Committee, a stockholder must submit the
 recommendation in writing and must include biographical information and set forth
 the qualifications of the proposed nominee. The stockholder recommendation and
 information described above must be sent to the Fund&#146;s Secretary, John E. Denneen,
 c/o Royce Focus Trust, Inc., 745 Fifth Avenue, New York, New York 10151.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Although the
 Board of Directors does not have a standing compensation committee, the Independent
 Directors review their compensation annually.</font></p>
<p><font face="Times New Roman" size="2"><b>Board&#146;s Oversight Role in Management</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Board&#146;s role in management of the Fund is oversight. As is the case with virtually
 all investment companies (as distinguished from operating companies), service providers
 to the Fund, primarily R&#038;A and its affiliates, have responsibility for the
 day-to-day management of the Fund, which includes responsibility for risk management
 (including management of investment performance and investment risk, valuation risk,
 issuer and counterparty credit risk, compliance risk and operational risk). As
 part of its oversight, the Board, acting at its scheduled meetings, or the Chairman
 of the Audit Committee, acting between Board meetings, regularly interacts with
 and receives reports from senior personnel of service providers, including the Fund&#146;s and R&#038;A&#146;s Chief Compliance Officer and portfolio management personnel.
 The Board&#146;s Audit Committee (which consists of the six Independent Directors)
 meets during its scheduled meetings, and between meetings the Chairman of the Audit
 Committee maintains contact with the Fund&#146;s independent registered public accounting
 firm and the Fund&#146;s Vice President and Treasurer. The Board also receives
 periodic presentations from senior personnel of R&#038;A or its affiliates regarding
 risk management generally, as well as periodic presentations regarding specific
 operational, compliance or investment areas such as business continuity, anti-money
 laundering, personal<br></font></p>
<p align="center"><font face="Times New Roman" size="2">12</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">trading,
 valuation, investment research and securities lending. The Board also receives
 reports from counsel to R&#038;A and the Board&#146;s own independent legal counsel
 regarding regulatory, compliance and governance matters. The Board&#146;s oversight
 role does not make the Board a guarantor of the Fund&#146;s investments or activities.</font></p>
<p><font face="Times New Roman" size="2"><b>Committee and Board of Directors Meetings</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">During the
 year ended December 31, 2010, the Board of Directors held six meetings, the Audit
 Committee held two meetings and the Nominating Committee did not hold any meetings.
 Each Director then in office attended 75% or more of the aggregate of the total
 number of meetings of the Board of Directors and the total number of meetings of
 the Audit Committee held during that year.</font></p>
<p><font face="Times New Roman" size="2"><b>Compensation of Directors and Affiliated Persons</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Each Independent
 Director receives a base fee of $4,500 per year plus $300 for each meeting of the
 Board of Directors attended. No Director received remuneration for services as a
 Director for the year ended December 31, 2010 in addition to or in lieu of this
 standard arrangement.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Set forth
 below is the aggregate compensation paid by the Fund and the total compensation
 paid by The Royce Funds to each Independent Director of the Fund for the year ended
 December 31, 2010</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Pension or</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Total</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Retirement</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Total</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Compensation</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Benefits</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Estimated</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Compensation</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>From the</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Aggregate</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Accrued</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Annual</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>From The</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Fund and</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Compensation</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>as Part</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Benefits</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td COLSPAN="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Royce Funds</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Fund Complex</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>From the</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>of Fund</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>upon</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Paid to</b></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Paid to</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Name</b></u></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><u><b>Fund</b></u></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><u><b>Expenses</b></u></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><u><b>Retirement</b></u></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><u><b>Directors</b></u></font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><u><b>Directors<sup>1</sup></b></u></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Patricia W. Chadwick,<br>Director</font></p></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="bottom" align="right"><font face="Times New Roman" size="2">$</font></td>
<td width="3%" valign="bottom" align="center"><font face="Times New Roman" size="2">5,000</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td width="6%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td width="6%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="bottom" align="right"><font face="Times New Roman" size="2">$</font></td>
<td width="3%" valign="bottom" align="center"><font face="Times New Roman" size="2">150,000</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="6%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="right" valign="bottom"><font face="Times New Roman" size="2">$</font></td>
<td width="3%" valign="bottom" align="center"><font face="Times New Roman" size="2">150,000</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Richard M.
 Galkin,<br>Director</font></p></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">5,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">150,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">150,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Stephen L.
 Isaacs,<br>Director</font></p></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">5,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">150,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">150,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Arthur S.
 Mehlman,<br>Director</font></p></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">5,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">150,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">295,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">David L. Meister,<br>Director</font></p></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">5,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">150,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">150,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">G. Peter O&#146;Brien,<br>Director</font></p></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">5,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">150,000</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">281,250</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<br>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="3"><hr size="1" color="#000000" noshade width="10%" align="left"></td>
</tr>
<tr>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2"><sup>1</sup></font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">Represents
 aggregate compensation paid to each Director during the calendar year ended December
 31, 2010 from the Fund Complex. The Fund Complex includes the 35 portfolios of
 The Royce Funds and the 16 portfolios of the Legg Mason Family of Funds.</font></p></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">13</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<div align="justify"><font face="Times New Roman" size="2"><b>Officers of the Fund</b></font></div>
<div align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Officers of
 the Fund are elected each year by the Fund&#146;s Board of Directors. The following
 sets forth information concerning the Fund&#146;s officers:</font></div>
<br>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Name, Address*
 and Principal</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b>Officer of</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Occupations During Past Five Years</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Age</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center" nowrap><font face="Times New Roman" size="2"><b><u>Office</u>**</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Fund Since</b></u></font></td>
</tr>
<tr>
<td colspan="7" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">
 Charles  M. Royce<br>President, Co-Chief Investment Officer and Member of Board of Managers
 of R&#038;A.</font></p></td>
<td width="8%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" valign="top" align="center"><font face="Times New Roman" size="2">71</font></td>
<td width="8%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" valign="top" align="center"><font face="Times New Roman" size="2">President</font></td>
<td width="8%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" valign="top" align="center"><font face="Times New Roman" size="2">1986</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">
John D. Diederich<br>Chief Operating Officer, Managing Director and Member of the Board
 of Managers of R&#038;A; Chief Financial Officer of R&#038;A; Director of Administration
 of The Royce Funds; and President of Royce Fund Services, Inc. (&#147;RFS&#148;),
 having been employed by R&#038;A since April 1993.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">60</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice<br>
President<br>and<br>Treasurer</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1997</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Jack
 E. Fockler, Jr.<br>Managing Director and Vice President of R&#038;A; Vice President
 of RFS, having been employed by R&#038;A since October 1989.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">52</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice<br>
President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1995</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">W.
 Whitney George<br>Managing Director, Vice President and Co-Chief Investment Officer
 of R&#038;A, having been employed by R&#038;A since October 1991.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">53</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice<br>
President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1995</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Daniel
 A. O&#146;Byrne<br>Principal and Vice President of R&#038;A, having been employed
 by R&#038;A since October 1986.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">49</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice<br>
President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1994</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">John
 E. Denneen<br>General Counsel, Principal, Chief Legal and Compliance Officer and
 Secretary of R&#038;A; Secretary and Chief Legal Officer of The Royce Funds.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">44</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Secretary
 and<br>Chief Legal<br>Officer</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1996 to
 2001<br>and<br>since 2002</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="justify"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">
Lisa Curcio<br>Chief Compliance Officer of The Royce Funds (since October 2004);
 and Compliance Officer of R&#038;A (since June 2004).</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">51</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Chief Compliance<br>Officer</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2004</font></td>
</tr>
</table>
<br>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="3"><hr size="1" color="#000000" noshade width="10%" align="left"></td>
</tr>
<tr>
<td width="1%" valign="top" align="right"><font face="Times New Roman" size="2">*</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">The address
 of each officer is c/o Royce &#038; Associates, LLC, 745 Fifth Avenue, New York,
 New York 10151.</font></p></td>
</tr>
<tr>
<td valign="top" nowrap align="right"><font face="Times New Roman" size="2">**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">Elected
 by and serves at the pleasure of the Board of Directors.</font></p></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">14</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2"><b>Stockholder Communications</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Stockholders
 may send written communications to the Fund&#146;s Board of Directors or to an individual
 Director by mailing such correspondence to the Secretary of the Fund (addressed
 to 745 Fifth Avenue, New York, New York 10151). Such communications must be signed
 by the stockholder and identify the class and number of shares held by the stockholder.
 Properly submitted stockholder communications will, as appropriate, be forwarded
 to the entire Board or to the individual Director. Any stockholder proposal submitted
 pursuant to Rule 14a-8 under the Securities Exchange Act of 1934, as amended (the
 &#147;Exchange Act&#148;), must continue to meet all the requirements of Rule 14a-8.
 See &#147;Additional Information &#150; Stockholder Proposals&#148; herein.</font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Director Attendance at Stockholder Meetings
</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Fund has
 no formal policy regarding Director attendance at stockholder meetings. None of
 the Fund&#146;s Independent Directors attended the 2010 Annual Meeting of Stockholders.
</font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Compliance with Section 16(a) of the
 Exchange Act</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Section 16(a)
 of the Exchange Act requires the officers and Directors of the Fund and persons
 who own more than ten percent of a registered class of the Fund&#146;s equity securities,
 to file reports of ownership and changes in ownership on Forms 3, 4 and 5 with the
 SEC and the New York Stock Exchange. Officers, Directors and greater than ten percent
 stockholders are required by SEC regulations to furnish the Fund with copies of
 all Forms 3, 4 and 5 they file.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Based solely
 on the Fund&#146;s review of the copies of such forms and amendments thereto, furnished
 to it during or with respect to its most recent fiscal year, and written representations
 from certain reporting persons that they were not required to file Form 5 with respect
 to the most recent fiscal year, the Fund believes that all of its officers, Directors,
 greater than ten percent beneficial owners and other persons subject to Section
 16 of the Exchange Act due to the requirements of Section 30(h) of the Investment
 Company Act (i.e., any investment adviser or affiliated person of the Fund&#146;s
 investment adviser), have complied with all filing requirements applicable to them
 with respect to transactions in the Fund&#146;s shares during the Fund&#146;s most
 recent fiscal year. </font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Stock Ownership</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Information
 relating to each Director&#146;s ownership as of July 14, 2011 in the Fund and in
 all registered Royce Funds overseen or to be overseen by each Director is set forth
 on the following page:</font></p>
<p align="center"><font face="Times New Roman" size="2">15</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="25%" valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Name </b></u></font></td>
<td width="10%"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="25%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Aggregate
 Dollar Range<br><u>of Equity in the Fund</u></b></font></td>
<td width="10%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Aggregate
 Dollar Range of <br>Securities in all Royce Funds <br>overseen by each Director
 <br> in the <br><u>Royce Family of Funds</u></b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Interested Director:</i> </font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Charles M.
 Royce</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000
</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000
</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Mark R. Fetting
</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$10,001
 &#150; $50,000</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000
</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Non-Interested
 Directors</i>:</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Patricia W. Chadwick</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000
</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Richard M.
 Galkin</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$10,001
 &#150; $50,000</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000
</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Stephen L.
 Isaacs</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$10,001
 &#150; $50,000</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000
</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Arthur S. Mehlman</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$10,001 &#150; $50,000</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">&#160;</font>
</td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">David L. Meister
</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">G. Peter O&#146;Brien</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$10,001 &#150; $50,000</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
</tr>
</table>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Information
 regarding ownership of the Fund&#146;s shares by the Fund&#146;s Directors and officers
 as of the Record Date is set forth below: </font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="26%" valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Name and Address*<br><u>of Owner</u></b></font></td>
<td width="10%"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="25%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Amount
 of Beneficial<br>Ownership of<br><u>Shares of Common Stock</u></b></font></td>
<td width="13%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center" colspan="2"><font face="Times New Roman" size="2"><b>Percent
 of Shares <br><u>Outstanding</u></b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Interested Directors</i>:</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td width="12%"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Charles M.
 Royce</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">1,454,472</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">7.25</font></td>
<td><font face="Times New Roman" size="2">%</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Mark R. Fetting</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">3,326</font>
</td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">0.02</font>
</td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Non-Interested
 Directors</i>:</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Patricia W. Chadwick</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center" colspan="2"><font face="Times New Roman" size="2">None</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Richard M. Galkin</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">2,654</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">0.01</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Stephen L.
 Isaacs</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">1,585</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">0.01</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Arthur S. Mehlman</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">3,896</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">0.02</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">David L. Meister</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center" colspan="2"><font face="Times New Roman" size="2">None</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">G. Peter O&#146;Brien</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">5,468</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">0.03</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Interested
 Officers</i>:</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">John D. Diederich </div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">30,919</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">0.15</font>
</td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Jack E. Fockler, Jr.</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">201,593</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">1.00</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">W. Whitney George</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">3,037,785</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">15.13</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Daniel A. O&#146;Byrne</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">5,808</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">0.03</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">John E. Denneen</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">19,393</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">0.10</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div style="text-indent:20px">Lisa Curcio</div></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center" colspan="2"><font face="Times New Roman" size="2">None</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td colspan="2" align="left"><hr noshade color="#000000" size="1" width="10%"></td>
</tr>
<tr>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">*</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">The address
 of each Director and officer is c/o Royce &#038; Associates, LLC, 745 Fifth Avenue,
 New York, New York 10151.</font></td>
</tr>
</table>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Mr. Royce
 has sole voting power and sole investment power as to the shares beneficially owned
 by him. As of the Record Date, all Directors and officers of the Fund as a group
 (14 persons) beneficially owned 4,766,899</font></p>
<p align="center"><font face="Times New Roman" size="2">16</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">shares of the Fund&#146;s Common Stock, constituting
 approximately 23.75% of the outstanding shares, and no shares of its Preferred
 Stock. </font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">As of July
 14, 2011, no Independent Director or any of his immediate family members directly
 or indirectly owned any securities issued by Legg Mason or any of its affiliates
 (other than registered investment companies).&#160;</font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Vote Required </b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">A quorum consists
 of stockholders representing a majority of the outstanding shares of the Fund&#146;s
 Common Stock and/or Preferred Stock, as the case may be, entitled to vote, who are
 present in person or by proxy, and a plurality of all of the votes cast at a meeting
 at which a quorum is present is sufficient to elect a Director. </font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2"><b>The Board
 of Directors recommends that all stockholders vote FOR all Director nominees. </b>
</font></p>
<p align="center"><font face="Times New Roman" size="2"><b>FEES PAID TO INDEPENDENT AUDITORS</b></font></p>
<p align="left"><font face="Times New Roman" size="2"><b> Audit Fees</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The aggregate
 fees paid to TW&#038;B in connection with the annual audit of the Fund&#146;s financial
 statements and for services normally provided by TW&#038;B in connection with the
 statutory and regulatory filings of the Fund for the fiscal years ended December
 31, 2009 and December 31, 2010 were $26,600 and $27,000, respectively, including
 out of pocket expenses. </font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Audit Related Fees </b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The aggregate
 fees paid to TW&#038;B in connection with assurance and related services related
 to the annual audit of the Fund and for review of the Fund&#146;s financial statements,
 other than the Audit Fees described above, for each of the fiscal years ended December
 31, 2009 and December 31, 2010 was $1,500. The audit-related services rendered
 by TW&#038;B to the Fund consisted of the preparation of reports to a rating agency
 for the Preferred Stock. </font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Tax Fees </b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The aggregate
 fees paid for tax-related services, including preparation of tax returns, tax compliance
 and tax advice, rendered by TW&#038;B to the Fund for the fiscal years ended December
 31, 2009 and December 31, 2010 were $6,750 and $6,800, respectively. </font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>All Other Fees </b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">There were
 no other fees billed for non-audit services rendered by TW&#038;B to the Fund for
 the fiscal years ended December 31, 2009 and December 31, 2010. The aggregate non-audit
 fees billed by TW&#038;B for services rendered to R&#038;A and any entity controlling,
 controlled by, or under common control with </font></p>
<p align="center"><font face="Times New Roman" size="2">17</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">R&#038;A that provides ongoing services
 to the Fund for the fiscal years ended December 31, 2009 and December 31, 2010 were
 $8,250 and $8,300, respectively. The Audit Committee has determined that the provision
 of non-audit services is compatible with maintaining the independence of TW&#038;B.
 </font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Audit
 Committee has determined that the preparation of the rating agency reports is compatible
 with maintaining TW&#038;B&#146;s independence. TW&#038;B did not provide any other
 professional services to the Fund or R&#038;A for the year ended December 31, 2010.
 No representatives of TW&#038;B will be present at the Meeting. </font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Audit Committee&#146;s Pre-Approval Policies
 and Procedures </b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Audit
 Committee of the Fund has adopted policies and procedures with regard to the pre-approval
 of audit and non-audit services. On an annual basis, at the Fund&#146;s December
 Audit Committee meeting, the independent auditors of the Fund will submit a schedule
 of proposed audit, audit-related, tax and other non-audit services to be rendered
 to the Fund and/or R&#038;A and its affiliates for the following year that require
 pre-approval by the Audit Committee. Such schedule will include the maximum fees
 that can be paid for such services without further Audit Committee approval. Any
 subsequent revision to pre-approved services or fees will be considered at the next
 regularly scheduled Audit Committee meeting. Services not presented for pre-approval
 at the December Audit Committee meeting will be submitted to the Chief Financial
 Officer of the Fund for a determination that the proposed services fit within the
 independence guidelines and then considered for pre-approval at the next regularly
 scheduled Audit Committee meeting. A proposal to commence an engagement involving
 audit, audit-related or tax services prior to the next regularly scheduled Audit
 Committee meeting shall be made in writing by the Chief Financial Officer to all
 Audit Committee members and include a summary of the engagement, estimated maximum
 cost, the category of services and the rationale for engaging the Fund&#146;s independent
 auditor. Such proposed engagement can be pre-approved by any Audit Committee member
 who is an Independent Director. Pre-approval by the Chairman of the Audit Committee
 is required for a proposed engagement involving non-audit services other than audit-related
 or tax. </font></p>
<p align="center"><font face="Times New Roman" size="2"><b>ADDITIONAL
 INFORMATION</b></font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Adjournment of Meeting; Other Matters
 </b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">In the event
 that sufficient votes in favor of Proposal 1 in the Notice of Annual Meeting of
 Stockholders are not received by the time scheduled for the Meeting, the persons
 named as proxies may propose one or more adjournments of the Meeting to permit further
 solicitation of proxies for such Proposal. Any such adjournment will require the
 affirmative vote of a majority of the shares present in person or by proxy at the
 session of the Meeting to be adjourned. The persons named as proxies will vote in
 favor of</font></p>
<p align="center"><font face="Times New Roman" size="2">18</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">such adjournment those proxies which they
 are entitled to vote in favor of the Proposal. They will vote against any such adjournment
 those proxies required to be voted against the Proposal. </font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">While the
 Meeting has been called to transact any business that may properly come before it,
 the Directors know of no business other than the matter stated in the Notice of
 Annual Meeting of Stockholders. However, if any additional matter properly comes
 before the Meeting and on all matters incidental to the conduct of the Meeting,
 it is the intention of the persons named in the enclosed Proxy to vote the Proxy
 in accordance with their judgment on such matters. </font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Fund expects that broker-dealer
 firms holding shares of the Fund in &#147;street name&#148; for the benefit of their
 customers and clients will request the instructions of such customers and clients
 on how to vote their shares on the Proposal before the Meeting. The Fund understands
 that, under the rules of the New York Stock Exchange, such broker-dealers may, without
 instructions from such customers and clients, grant authority to the proxies designated
 by the Fund to vote on the election of Directors if no instructions have been received
 prior to the date specified in the broker-dealer firm&#146;s request for voting
 instructions. Certain broker-dealer firms may exercise discretion over shares held
 in their name for which no instructions are received by voting such shares in the
 same proportion as they have voted shares for which they have received instructions.
 </font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The shares
 as to which the Proxies so designated are granted authority by broker-dealer firms
 to vote on the matters to be considered at the Meeting, the shares as to which broker-dealer
 firms have declined to vote (&#147;broker non-votes&#148;) and the shares as to
 which Proxies are returned by record stockholders but which are marked &#147;abstain&#148; on any matter will be included in the Fund&#146;s tabulation of the total
 number of votes present for purposes of determining whether the necessary quorum
 of stockholders exists. However, abstentions and broker non-votes will not be counted
 as votes cast. Therefore, abstentions and broker non-votes will not have an effect
 on the election of Directors. </font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Address of Investment Adviser </b></font>
</p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">R&#038;A&#146;s
 principal office is located at 745 Fifth Avenue, New York, New York 10151. </font>
</p>
<p align="justify"><font face="Times New Roman" size="2"><b>Annual Report Delivery </b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2"><b>The Fund&#146;s Annual Report to Stockholders for the year ended December 31, 2010 was previously
 mailed to its stockholders and the Semiannual Report to Stockholders for the six
 months ended June 30, 2011 will be mailed to stockholders in late August 2011.
 Copies of the Annual Report are available, and copies of the Semiannual Report will
 be available in late August, upon request, without charge, by writing to the </b>
</font></p>
<p align="center"><font face="Times New Roman" size="2">19</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2"><b>Fund at 745 Fifth Avenue, New York, New
 York 10151 or calling toll free at 1-800-221-4268. All publicly released material
 information is always disclosed by the Fund on its website at <u>www.roycefunds.com</u>.</b></font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Stockholder Proposals </b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Proposals
 of stockholders intended to be presented at the Fund&#146;s 2012 Annual Meeting
 of Stockholders must be received by the Fund by April 7, 2012 for inclusion in the
 Fund&#146;s Proxy Statement and form of Proxy for that meeting. The Fund&#146;s
 By-laws generally require advance notice be given to the Fund in the event a stockholder
 desires to nominate a person for election to the Board of Directors or to transact
 any other business from the floor at an annual meeting of stockholders. Notice of
 any such nomination or other business intended to be presented at the Fund&#146;s
 2012 Annual Meeting of Stockholders must be in writing and received at the Fund&#146;s principal executive office between April 7, 2012 and May 7, 2012. Written
 proposals should be sent to the Secretary of the Fund, 745 Fifth Avenue, New York,
 New York 10151. </font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Proxy Delivery </b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">If you and
 another stockholder share the same address, the Fund may only send one proxy statement
 unless you or the other stockholder(s) request otherwise. Call or write the Fund
 if you wish to receive a separate copy of the proxy statement and the Fund will
 promptly mail a copy to you. You may also call or write to the Fund if you wish
 to receive a separate proxy in the future, or if you receive multiple copies now,
 and wish to receive a single copy in the future. For such requests, please call
 1-800-221-4268, or write the Fund at 745 Fifth Avenue, New York, New York 10151.
 &#160;</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2"><b>PLEASE
 FILL IN, DATE AND SIGN THE ENCLOSED PROXY AND RETURN IT IN THE ACCOMPANYING POSTAGE-PAID
 ENVELOPE. </b></font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">By order of
 the Board of Directors,</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">John E. Denneen
</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Secretary
</i></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Dated: August
 5, 2011</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">20</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>E<small>XHIBIT</small> A </b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>C<small>HARTER OF
 THE</small> A<small>UDIT</small> C<small>OMMITTEE <br>OF THE</small> B<small>OARD OF</small> D<small>IRECTORS</small>/T<small>RUSTEES</small>
<br>F<small>OR THE ROYCE</small> F<small>UNDS</small> L<small>ISTED</small> I<small>N</small> A<small>PPENDIX A</small> H<small>ERETO</small></b></font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2"><b>I. </b>
</font></td>
<td width="3%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Composition
 of the Audit Committee </b></u></font></td>
</tr>
</table>
<p style="text-indent:47px;" align="justify"><font face="Times New Roman" size="2">The Audit
 Committee shall be composed of at least three Directors/Trustees, each of whom:
 </font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top"><font face="Times New Roman" size="2">(a)</font></td>
<td width="2%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">shall not
 be an &#147;interested person&#148; of the Fund, as defined in Section 2(a)(19)
 of the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;);</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(b)</font>
</td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">shall not
 accept directly or indirectly any consulting, advisory, or other compensatory fee
 from the Fund (other than fees for serving on the Board of Directors/Trustees or
 any committee thereof); and</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(c)</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">shall be financially
 literate at the time of his or her appointment to the Audit Committee, as such qualification
 is interpreted by the Board of Directors/Trustees in its business judgment, or shall
 become financially literate within a reasonable period of time after his or her
 appointment to the Audit Committee.</font></p></td>
</tr>
</table>
<p style="text-indent:47px;" align="justify"><font face="Times New Roman" size="2">In the event
 Fund shares are or become listed on a national securities exchange or are or become
 quoted on a national market quotation system, the additional qualification requirements
 set forth below also shall apply: </font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">(d)</font></td>
<td width="2%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">each Director/Trustee
 who is a member of the Audit Committee shall satisfy the applicable independence
 requirements for any such national securities exchange or national market quotation
 system; and</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(e)</font>
</td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">at least one
 Director/Trustee who is a member of the Audit Committee shall have accounting or
 related financial management expertise as the Board of Directors/Trustees interprets
 such qualification in its business judgment.</font></p></td>
</tr>
</table>
<p style="text-indent:47px;" align="justify"><font face="Times New Roman" size="2">The Board
 of Directors/Trustees shall determine annually: (i) whether at least one of the
 members of the Audit Committee is an &#147;audit </font></p>
<p align="center"><font face="Times New Roman" size="2">A-1</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">committee financial expert,&#148; as defined
 in rules of the Securities and Exchange Commission and (ii) whether simultaneous
 service on more than three public company audit committees by a member of the Audit
 Committee would not impair the ability of such member to serve on the Audit Committee.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2"><b>II. </b></font></td>
<td width="3%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Purposes
 of the Audit Committee </b></u></font></td>
</tr>
</table>
<p style="text-indent:47px;" align="justify"><font face="Times New Roman" size="2">The Audit
 Committee shall be responsible for: </font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">(1)</font>
</td>
<td width="2%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left" colspan="3"><font face="Times New Roman" size="2">assisting
 Board oversight of the</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2">(a) </font>
</td>
<td width="1%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">integrity
 of the Fund&#146;s financial statements;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(b) </font>
</td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">independent
 accountants&#146; qualifications and independence; and</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(c) </font>
</td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">performance
 of the Fund&#146;s independent accountants; and</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(2)</font>
</td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left" colspan="3"><font face="Times New Roman" size="2"><p align="justify">preparation,
 or overseeing the preparation of, any audit committee report required by rules of
 the Securities and Exchange Commission to be included in the Fund&#146;s proxy statement
 for its annual meeting of stockholders.</font></p></td>
</tr>
</table>
<br>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2"><b>III. </b>
</font></td>
<td width="3%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Responsibilities
 and Duties of the Audit Committee </b></u></font></td>
</tr>
</table>
<p style="text-indent:47px;" align="justify"><font face="Times New Roman" size="2">The Fund&#146;s
 independent accountants shall report directly to the Audit Committee. </font></p>
<p style="text-indent:47px;" align="justify"><font face="Times New Roman" size="2">As may be
 necessary or appropriate to carry out its purposes, or to comply with applicable
 law or the requirements of any securities exchange or market quotation system on
 which Fund shares are or may become listed or quoted, the Audit Committee shall
 have the following responsibilities and duties: </font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2">(a)</font>
</td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><p align="justify">the appointment,
 compensation, retention and oversight of the work of the Fund&#146;s independent
 accountants, including the resolution of disagreements between management and the
 independent accountants regarding financial reporting;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(b)</font>
</td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><p align="justify">to (i) select
 an accounting firm to (1) serve as the Fund&#146;s independent accountants, (2)
 audit the Fund&#146;s financial statements on an annual basis, and (3) provide an
 opinion on an annual basis with respect to the Fund&#146;s financial statements,
 and (ii) recommend that the members of the</font></p></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">A-2</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="3%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">Board of Directors/Trustees
 who are not &#147;interested persons&#148; of the Fund, as defined in Section 2(a)(19)
 of the 1940 Act, ratify such selection;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(c)</font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">to pre-approve
 (i) all audit and permissible non-audit services to be provided to the Fund by the
 Fund&#146;s independent accountants and (ii) all permissible non-audit services
 to be provided by the Fund&#146;s independent accountants to the Fund&#146;s Investment
 Adviser or any entity controlling, controlled by, or under common control with the
 Investment Adviser (&#147;Adviser Affiliate&#148;) that provides ongoing services
 to the Fund, if the engagement by the Adviser Affiliate relates directly to the
 operations and financial reporting of the Fund;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(d)</font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">if determined
 to be advisable, to develop policies and procedures for pre-approval of the engagement
 of the Fund&#146;s independent accountants to provide any of the audit or non-audit
 services described in Section III(c) above;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(e)</font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">to consider
 whether each non-audit service provided by the Fund&#146;s independent accountants
 to the Fund and to the Fund&#146;s Investment Adviser or any Adviser Affiliate that
 provides ongoing services to the Fund is compatible with maintaining the independence
 of such independent accountants;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(f)</font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">to ensure
 that the Fund&#146;s independent accountants submit on a periodic basis to the Audit
 Committee a formal written statement delineating all relationships between such
 independent accountants and the Fund, consistent with Independence Standards Board
 Standard No. 1, and to actively engage in a dialogue with, and receive and consider
 specific representations from, the Fund&#146;s independent accountants with respect
 to any disclosed relationships or services that may affect the objectivity and independence
 of such independent accountants;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(g)</font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">to review
 the arrangements for annual and special audits and the scope of such audits with
 the Fund&#146;s independent accountants;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(h)</font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">to meet to
 review and discuss the Fund&#146;s audited financial statements and, to the extent
 required by applicable law or regulations, the Fund&#146;s semi-annual financial
 statements</font></p></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">A-3</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="3%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">with Fund
 management and the Fund&#146;s independent accountants, including the Fund&#146;s
 disclosure of management&#146;s discussion of Fund performance;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(i)</font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">to review
 with the Fund&#146;s independent accountants any audit problems or difficulties
 the accountants may have encountered during or relating to the conduct of the audit,
 including any matters required to be discussed pursuant to rules of The Public Company
 Accounting Oversight Board and other relevant regulatory and professional organizations,
 and management&#146;s response;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(j)</font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">to establish
 and administer policies and procedures relating to the hiring by the Fund, its Investment
 Adviser, or any administrator that is an Adviser Affiliate of employees or former
 employees of the Fund&#146;s independent accountants;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(k)</font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">to consider
 information and comments from the Fund&#146;s independent accountants with respect
 to the Fund&#146;s accounting and financial reporting policies, procedures and internal
 control over financial reporting (including the Fund&#146;s critical accounting
 policies and practices) and management&#146;s responses to any such comments;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(l)</font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">to request,
 receive and/or review from the Fund&#146;s independent accountants such other materials
 as may be deemed necessary or advisable in the discretion of the Committee in the
 exercise of its duties under this Charter; such materials may (but are not required
 to) include, without limitation, any other material written communications relating
 to the Fund&#146;s financial statements, or internal or disclosure controls, between
 the independent accountants and the Fund, the Investment Adviser, the Fund&#146;s
 sub-adviser(s), if any, or other Fund service providers, such as any management
 letter or schedule of unadjusted differences;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(m) </font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">at least annually,
 to obtain and review a report by the Fund&#146;s independent accountants describing:
 (i) such independent accountants&#146; internal quality-control procedures; (ii)
 any material issues raised by the most recent internal quality-control review,
 or peer review, of such independent accountants, or by any inquiry or investigation
 by governmental or professional authorities, within the</font></p></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">A-4</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="3%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">preceding
 five years, respecting one or more independent audits carried out by such firm,
 and any steps taken to deal with any such issues; and (iii) all relationships between
 the Fund&#146;s independent accountants and the Fund, the Investment Adviser, Adviser
 Affiliates and members of the management of such entities (to assess the independence
 of the Fund&#146;s independent accountants);</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(n) </font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">to establish
 procedures for: (i) the receipt, retention, and treatment of complaints received
 by the Fund regarding accounting, internal accounting controls, or auditing matters;
 and (ii) the confidential, anonymous submission of concerns by employees of the
 Fund&#146;s Investment Adviser, manager, administrator, principal underwriter, or
 any other provider of accounting related services for the Fund regarding questionable
 accounting or auditing matters;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(o) </font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">to address
 reports received from attorneys in accordance with procedures adopted by the Fund&#146;s Investment Adviser relating to the possible violation of federal or state
 law or fiduciary duty;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(p)</font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2"> to discuss
 with Fund management and the Fund&#146;s independent accountants policies with respect
 to risk assessment and risk management; and</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(q) </font>
</td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">to perform
 such other functions and to have such other powers consistent with this Charter,
 the Fund&#146;s Articles of Incorporation or Declaration of Trust, as amended and
 supplemented, the Fund&#146;s By-laws, as amended, and applicable law, as the Audit
 Committee or the Board deems necessary or appropriate.</font></p></td>
</tr>
</table>
<p style="text-indent:30px;" align="justify"><font face="Times New Roman" size="2">The Audit
 Committee may delegate any portion of its authority, including the authority to
 grant preapprovals of audit related services and permitted non-audit services, to
 a subcommittee of one or more members of the Audit Committee pursuant to preapproval
 policies and procedures established by the Audit Committee; provided, however, that
 the Audit Committee may not delegate preapproval of the audit required by the Securities
 Exchange Act of 1934. Any decision of such subcommittee of the Audit Committee
 to grant preapprovals shall be presented to the full Audit Committee at its next
 regularly scheduled meeting. </font></p>
<p align="center"><font face="Times New Roman" size="2">A-5</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<p style="text-indent:30px;" align="justify"><font face="Times New Roman" size="2">The function
 of the Audit Committee is oversight; it is the responsibility of Fund management
 to maintain appropriate systems for accounting and internal control over financial
 reporting, and the responsibility of the Fund&#146;s independent accountants to
 plan and carry out a proper audit. Specifically, Fund management is responsible
 for: (1) the preparation, presentation and integrity of the Fund&#146;s financial
 statements; (2) the maintenance of appropriate accounting and financial reporting
 principles and policies; and (3) the maintenance of internal control over financial
 reporting and other procedures designed to assure compliance with accounting standards
 and related laws and regulations. The Fund&#146;s independent accountants are responsible
 for planning and carrying out an audit consistent with applicable legal and professional
 standards and the terms of their engagement letter. Nothing in this Charter shall
 be construed to reduce the responsibilities or liabilities of the Fund&#146;s service
 providers, including the Fund&#146;s independent accountants. </font></p>
<p style="text-indent:30px;" align="justify"><font face="Times New Roman" size="2">Although the
 Audit Committee is expected to review appropriately the matters that come before
 it, such review of a Fund&#146;s financial statements by the Audit Committee is
 not an audit, nor does the Committee&#146;s review substitute for the responsibilities
 of the Fund&#146;s management for preparing, or the Fund&#146;s independent accountants
 for auditing, the financial statements. Members of the Audit Committee are not
 employees of the Fund and, in serving on the Audit Committee, are not, and do not
 hold themselves out to be, acting as accountants or auditors. As such, it is not
 the duty or responsibility of the Audit Committee or its members to conduct &#147;field
 work&#148; or other types of auditing or accounting reviews or procedures. </font>
</p>
<p style="text-indent:30px;" align="justify"><font face="Times New Roman" size="2">In discharging
 their duties, the members of the Audit Committee are entitled to rely on information,
 opinions, reports, or statements, including financial statements and other financial
 data, if prepared or presented by: (1) one or more officers of the Fund whom the
 Board reasonably believes to be reliable and competent in the matters presented;
 (2) legal counsel, public accountants, or other persons as to matters the Board
 reasonably believes are within the person&#146;s professional or expert competence;
 or (3) a committee of the Board. </font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2"><b>IV. </b>
</font></td>
<td width="3%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Meetings
 </b></u></font></td>
</tr>
</table>
<p style="text-indent:47px;" align="justify"><font face="Times New Roman" size="2">The Audit
 Committee shall meet on a regular basis but no less frequently than annually. The
 Audit Committee periodically shall meet separately with the Fund&#146;s independent
 accountants, Fund management, and representatives of Fund management responsible
 for the financial and accounting operations of the Fund. The Audit Committee may
 hold special meetings at such times as the Audit Committee believes necessary or
 appropriate. Members of the Audit Committee may participate in a meeting </font>
</p>
<p align="center"><font face="Times New Roman" size="2">A-6</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">of the Audit Committee by means of conference
 call or similar communications equipment by means of which all persons participating
 in such meeting can hear each other. </font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom" align="justify"><font face="Times New Roman" size="2"><b>V.
</b></font></td>
<td width="3%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="justify"><font face="Times New Roman" size="2"><u><b>
Assistance from Fund Management; Authority to Engage Advisers; Funding </b></u></font>
</td>
</tr>
</table>
<p style="text-indent:47px;" align="justify"><font face="Times New Roman" size="2">The appropriate
 officers of the Fund shall provide or arrange to provide such information, data
 and services as the Audit Committee may request. The Audit Committee shall have
 the power and authority to take all action it believes necessary or appropriate
 to discharge its responsibilities, including the power and authority to retain independent
 counsel and other advisers. The Fund shall provide for appropriate funding, as
 determined by the Audit Committee as a committee of the Board, for payment of:
 (i) compensation to the Fund&#146;s independent accountants or any other accounting
 firm engaged for the purpose of preparing or issuing an audit report or performing
 other audit, review, or attest services for the Fund, (ii) compensation to any advisers
 employed by the Audit Committee under this Section V, and (iii) ordinary administrative
 expenses of the Audit Committee that are necessary or appropriate in carrying out
 its responsibilities. </font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2"><b>VI. </b>
</font></td>
<td width="3%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Reporting
 </b></u></font></td>
</tr>
</table>
<p style="text-indent:47px;" align="justify"><font face="Times New Roman" size="2">The Chairman
 of the Audit Committee shall report to the Board on the results of its deliberations
 and make such recommendations as deemed necessary or appropriate. </font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2"><b>VII. </b>
</font></td>
<td width="3%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Amendments
 </b></u></font></td>
</tr>
</table>
<p style="text-indent:47px;" align="justify"><font face="Times New Roman" size="2">This Charter
 may be amended or modified from time to time by vote of the Board. </font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Dated: April 11, 2000, as revised through
 February 16, 2011 </b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>Appendix
 A <br></b>Royce Capital Fund <br>Royce Focus Trust, Inc. <br>Royce Global Value
 Trust, Inc. <br>Royce Micro-Cap Trust, Inc. <br>Royce Value Trust, Inc. <br>The
 Royce Fund</font></p>
<p align="center"><font face="Times New Roman" size="2">A-7</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>E<small>XHIBIT</small> B </b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>C<small>HARTER OF
 THE</small> N<small>OMINATING</small> C<small>OMMITTEE <br>OF THE</small> B<small>OARD OF</small> D<small>IRECTORS</small>/T<small>RUSTEES FOR</small>
 <br>T<small>HE</small> R<small>OYCE</small> F<small>UNDS</small> L<small>ISTED IN</small> A<small>PPENDIX</small> A H<small>ERETO</small></b></font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>O<small>RGANIZATION</small> </b></font></p>
<p align="justify"><font face="Times New Roman" size="2">The Nominating Committee (the &#147;Committee&#148;)
 of the Board of Directors/Trustees for the registered investment companies
 (each, a &#147;Fund&#148;) listed on Exhibit A attached hereto shall be composed
 solely of Directors/Trustees who are not &#147;interested persons&#148; of the Fund
 as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended
 (the &#147;1940 Act&#148;), and who are &#147;independent&#148; as defined in the
 applicable listing standards of the national securities exchange or national market
 quotation system (each, an &#147;Exchange&#148;) on which a Fund is listed or quoted
 (the &#147;Independent Directors&#148;). The Board of Directors/Trustees of the
 Fund (the &#147;Board&#148;) shall appoint the members of the Committee (which may
 or may not be all of the Independent Directors) and shall designate the Chairman
 of the Committee. The Committee shall have authority to retain its own counsel
 and other advisers the Committee deems appropriate and shall have the sole authority
 to approve the compensation and other terms of their retention.</font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>R<small>ESPONSIBILITIES</small> </b></font></p>
<p align="justify"><font face="Times New Roman" size="2">The Committee shall identify individuals
 qualified to serve as Independent Directors of the Fund and shall recommend its
 nominees for consideration by the full Board. </font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>I<small>DENTIFICATION AND</small> E<small>VALUATION OF</small> P<small>OTENTIAL</small>
 N<small>OMINEES</small> </b></font></p>
<p align="justify"><font face="Times New Roman" size="2">In identifying and evaluating a person as
 a potential nominee to serve as an Independent Director of the Fund, the Committee
 should consider among other factors it may deem relevant: </font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="1%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="1%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">the contribution
 which the person can make to the Board, with consideration being given to the person&#146;s business and professional experience, education and such other factors as
 the Committee may consider relevant, including but not limited to whether a potential
 nominee&#146;s personal and professional qualities and attributes would provide
 a beneficial diversity of skills, experience and/or perspective to the Board;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">the character
 and integrity of the person;</font></p></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">B-1</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="1%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="1%"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">whether or
 not the person is an &#147;interested person&#148; as defined in the 1940 Act and
 whether the person is otherwise qualified under applicable laws and regulations
 to serve as a Director or Independent Director of the Fund;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">whether or
 not the person has any relationships that might impair his independence, such as
 any business, financial or family relationships with Fund management, the investment
 adviser of the Fund, Fund service providers or their affiliates;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">whether or
 not the person is financially literate pursuant to the applicable Exchange&#146;s
 audit committee membership standards;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">whether or
 not the person serves on boards of, or is otherwise affiliated with, competing financial
 service organizations or their related investment company complexes;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">whether or
 not the person is willing to serve as, and willing and able to commit the time necessary
 for the performance of the duties of a Director of the Fund;</font></p></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><p align="justify"><font face="Times New Roman" size="2">whether or
 not the selection and nomination of the person would be in the best interest of
 the Fund in light of the requirements of the Fund&#146;s retirement policies.</font></p></td>
</tr>
</table>
<p align="justify"><font face="Times New Roman" size="2">While the Committee is solely responsible
 for the selection and nomination of the Fund&#146;s Independent Directors, the Committee
 shall review and consider nominations for the office of Director made by management
 and by Fund stockholders as it deems appropriate. Stockholders who wish to recommend
 a nominee should send nominations to the Secretary of the Fund which include biographical
 information and set forth the qualifications of the proposed nominee. </font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Q<small>UORUM</small> </b></font></p>
<p align="justify"><font face="Times New Roman" size="2">A majority of the members of the Committee
 shall constitute a quorum for the transaction of business, and the act of a majority
 of the members of the Committee present at any meeting at which there is quorum
 shall be the act of the Committee. </font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>N<small>OMINATION OF</small> D<small>IRECTORS</small></b></font></p>
<p align="justify"><font face="Times New Roman" size="2">After a determination by the Committee that
 a person should be selected and nominated as an Independent Director of the Fund,
 the Committee shall </font></p>
<p align="center"><font face="Times New Roman" size="2">B-2</font></p>
<hr size="3" color="gray" noshade>
<br clear="all" style="page-break-before:always">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">present its recommendation to the full Board
 for its consideration and, if necessary, to the Independent Directors. </font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>M<small>EETINGS</small></b></font></p>
<p align="justify"><font face="Times New Roman" size="2">The Committee may meet either on its own
 or in conjunction with meetings of the Board. Meetings of the Committee may be
 held in person, by video conference or by conference telephone. The Committee may
 take action by unanimous written consent in lieu of a meeting. </font></p>
<p align="justify"><font face="Times New Roman" size="2">Adopted: February 10, 2004 <br>Revised through
 February 16, 2011 </font></p>
<p align="center"><font face="Times New Roman" size="2"><b>A<small>PPENDIX</small> A
 <br></b>Royce Capital Fund <br>Royce Focus Trust, Inc. <br>Royce Global Value
 Trust, Inc. <br>Royce Micro-Cap Trust, Inc. <br>Royce Value Trust, Inc. <br>The Royce Fund</font></p>
<p align="center"><font face="Times New Roman" size="2">B-3</font></p>
<div><hr size="3" noshade color="gray"></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="30%" valign="bottom" align="left"><font face="Times New Roman" size="2"><i><b><i><b>PROXY TABULATOR</b></i></b></i></font></td>
<td width="20%"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i><b><i>
<b>P.O. BOX 9112</b></i></b></i></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>To vote
 by Internet</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i><b><i>
<b>FARMINGDALE, NY 11735</b></i></b></i></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left" NOWRAP><font face="Times New Roman" size="2">1)&#160;&#160;&#160;Read the
 Proxy Statement and have the proxy card below at hand.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2)&#160;&#160;&#160;Go to website
<b><u>www.proxyvote.com</u></b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">3)&#160;&#160;&#160;Follow
 the instructions provided on the website.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>To vote
 by Telephone</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1)&#160;&#160;&#160;Read the
 Proxy Statement and have the proxy card below at hand.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2)&#160;&#160;&#160;Call<b>
1-800-690-6903</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">3)&#160;&#160;&#160;Follow
 the instructions.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>To vote by Mail</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1)&#160;&#160;&#160;Read the
 Proxy Statement.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2)&#160;&#160;&#160;Check the
 appropriate boxes on the proxy card below.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">3)&#160;&#160;&#160;Sign and
 date the proxy card.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">4)&#160;&#160;&#160;Return
 the proxy card in the envelope provided.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<table   border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="60%"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2"><b><i>If you vote by Telephone or Internet,</i></b></font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2"><b><i><u>you do not need to mail</u> your proxy.</i></b></font></td>
</tr>
</table>
<br>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="5" align="left"><font face="Times New Roman" size="2">
TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:</font></td>
</tr>
<tr>
<td width="22%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="2" valign="bottom" align="center"><font face="Times New Roman" size="2">M37383-P15198</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap width="26%" valign="bottom" align="right"><font face="Times New Roman" size="2">KEEP THIS
 PORTION FOR YOUR RECORDS</font></td>
</tr>
<tr>
<td valign="bottom" colspan="5"><hr style="border:2px #000 dashed;" color="#000000" noshade></td>
</tr>
<tr>
<td valign="bottom" colspan="3" align="center"><font face="Times New Roman" size="2">
<b>THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="right"><font face="Times New Roman" size="2">DETACH AND
 RETURN THIS PORTION ONLY</font></td>
</tr>
</table>
<br>
<div style="border:1px #000 solid;">
<table  border="0" cellpadding="0" cellspacing="0" width="96%" align="center">
<tr>
<td colspan="33"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" style="border-right:2px #000 solid; border-top:2px #000 solid;"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td style="border-right:2px #000 solid;"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="2%" rowspan="33"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="1%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="5%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="30%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>For</b></font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>&#160; Withhold &#160;</b></font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>&#160;For All&#160;</b></font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td rowspan="5" valign="top"><p align="justify"><font face="Times New Roman" size="2">To withhold authority to vote for any individual
nominee(s), mark &#147;For All Except&#148; and write the name(s)
of the nominee(s) on the line below.</font></p></td>
<td width="2%"  rowspan="33"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" nowrap colspan="3" align="left"><font face="Times New Roman" size="2"><b>Vote on Directors</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>All</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>All</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Except</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2">Election of Directors</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Nominees:
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" nowrap align="left"><font face="Times New Roman" size="2">01)&#160;&#160;&#160;Patricia W. Chadwick</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">0&#160;&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">0</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">0</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="TIMES NEW ROMAN" size="1"><hr size="1" color="#000000" noshade></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" nowrap align="left"><font face="Times New Roman" size="2">02)&#160;&#160;&#160;Richard M. Galkin</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" nowrap align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2.</font></td>
<td valign="bottom" colspan="12" align="left"><font face="Times New Roman" size="2">&#160;&#160;To transact such other business as may properly come before the meeting</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
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<b>The shares of stock represented by this Proxy will be voted in accordance with
 the specifications made above.</b></font></td>
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<td valign="bottom" colspan="13" align="justify"><font face="Times New Roman" size="2">
<b>If no specifications are made, such shares will be voted FOR the election of all
 the nominees for Director.</b></font></td>
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</tr>
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<td valign="bottom" colspan="13" align="left"><font face="Times New Roman" size="2">
<b>Please Sign, Date and Return the Proxy Card Promptly Using the Enclosed Envelope.
</b></font></td>
</tr>
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</tr>
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<td valign="bottom" colspan="13" align="left"><font face="Times New Roman" size="2">
<b>Note: Please be sure to sign and date this proxy</b></font></td>
</tr>
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<table  border="0" cellpadding="0" cellspacing="0" width="96%">
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<td nowrap valign="bottom" align="left"><div style="border-top:1px #000 solid; border-bottom:1px #000 solid; border-left:1px #000 solid; border-right:1px #000 solid;"><font face="Times New Roman" size="2"><br><br>&#160;</font></div></td>
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<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="30%" nowrap valign="bottom" align="left"><font face="Times New Roman" size="2">Signature [PLEASE SIGN WITHIN BOX]</font></td>
<td width="8%" valign="bottom" align="left"><font face="Times New Roman" size="2">Date</font></td>
<td width="15%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="30%" nowrap valign="bottom" align="left"><font face="Times New Roman" size="2">Signature (Joint Owners)</font></td>
<td width="8%" valign="bottom" align="left"><font face="Times New Roman" size="2">Date</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
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<td colspan="7"><font face="Times New Roman" size="1">&#160;</font></td>
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</div>
<br>
<div><hr noshade size="3" color="gray"></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>Important Notice Regarding the Availability
 of Proxy Materials for the Annual Meeting:</b><br>The Proxy Statement is available
 at www.proxyvote.com.</font></p>
<br>
<br>
<br>
<br>
<br>
<br>
<table   border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
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<td valign="bottom"><hr style="border:2px #000 dashed;" color="#000000" noshade></td>
</tr>
<tr>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">M37384-P15198</font></td>
</tr>
</table>
<br>
<br>

<div style="border:1px #000 solid;">
<table  border="0" cellpadding="0" cellspacing="0" width="96%">
<tr>
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<td colspan="33"><font face="Times New Roman" size="1">&#160;</font></td>
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<tr>
<td width="2%"  rowspan="15"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="22%" valign="bottom" align="left"><font face="Times New Roman" size="2"><b>COMMON PROXY</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td width="22%" valign="bottom" align="right"><font face="Times New Roman" size="2"><b>COMMON PROXY</b></font></td>
<td width="2%"  rowspan="15"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>ROYCE FOCUS TRUST, INC.</b></font></td>
</tr>
<tr>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>COMMON
 STOCK</b></font></td>
</tr>
<tr>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>745 FIFTH
 AVENUE</b></font></td>
</tr>
<tr>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>NEW YORK,
 NEW YORK 10151</b></font></td>
</tr>
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
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<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>This
 Proxy is solicited on behalf of the Board of Directors.</b></font></td>
</tr>
<tr>
<td valign="bottom" colspan="3" align="center"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" colspan="3"> <div align="justify"><font face="Times New Roman" size="2">
The undersigned hereby appoints Charles M. Royce and John E. Denneen, or either of them acting in absence of the other, as
Proxies, each with the power to appoint his substitute, and hereby authorizes them to represent and to vote, as designated on the
reverse, all shares of stock of the Fund held of record by the undersigned on July 14, 2011 at the Annual Meeting of Stockholders
of Royce Focus Trust, Inc. to be held on September 22, 2011, and at any adjournment thereof.</font></div></td>
</tr>
<tr>
<td valign="bottom" colspan="3" align="center"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" colspan="3" align="left"><font face="Times New Roman" size="2">
<b>PLEASE VOTE, DATE AND SIGN ON REVERSE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.
</b></font></td>
</tr>
<tr>
<td valign="bottom" colspan="3" align="center"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" colspan="3"><div align="justify"><font face="Times New Roman" size="2">
Please sign exactly as your name(s) appear(s) on other side. When shares are held by joint tenants, both should sign. When signing
as attorney, executor, administrator, trustee or guardian, please give full title as such. If a corporation, please sign in full corporate
name by president or other authorized officer. If a partnership, please sign in partnership name by authorized person.</font></div></td>
</tr>
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<td colspan="33"><font face="Times New Roman" size="1">&#160;</font></td>
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<td colspan="33"><font face="Times New Roman" size="1">&#160;</font></td>
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</table>
</div>
<br>
<div><hr noshade size="3" color="gray"></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table   border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="30%" valign="bottom" align="left"><font face="Times New Roman" size="2"><i><b><i>
<b>PROXY TABULATOR</b></i></b></i></font></td>
<td width="20%"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i><b><i>
<b>P.O. BOX 9112</b></i></b></i></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>To vote
 by Internet</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i><b><i>
<b>FARMINGDALE, NY 11735</b></i></b></i></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1)&#160;&#160;&#160;Read the
 Proxy Statement and have the proxy card below at hand.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2)&#160;&#160;&#160;Go to website
<b><u>www.proxyvote.com</u></b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">3)&#160;&#160;&#160;Follow
 the instructions provided on the website.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>To vote
 by Telephone</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1)&#160;&#160;&#160;Read the
 Proxy Statement and have the proxy card below at hand.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2)&#160;&#160;&#160;Call<b>
1-800-690-6903</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">3)&#160;&#160;&#160;Follow
 the instructions.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>To vote
 by Mail</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1)&#160;&#160;&#160;Read the
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</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2)&#160;&#160;&#160;Check the
 appropriate boxes on the proxy card below.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">3)&#160;&#160;&#160;Sign and
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</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">4)&#160;&#160;&#160;Return
 the proxy card in the envelope provided.</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<table   border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="60%"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2"><b><i>If you vote by Telephone or Internet,</i></b></font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="2"><b><i><u>you do not need to mail</u> your proxy.</i></b></font></td>
</tr>
</table>
<br>
<table   border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="5" align="left"><font face="Times New Roman" size="2">
TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:</font></td>
</tr>
<tr>
<td width="22%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="2" valign="bottom" align="center"><font face="Times New Roman" size="2">M37385-P15198</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap width="26%" valign="bottom" align="right"><font face="Times New Roman" size="2">KEEP THIS
 PORTION FOR YOUR RECORDS</font></td>
</tr>
<tr>
<td valign="bottom" colspan="5"><hr style="border:2px #000 dashed;" color="#000000" noshade></td>
</tr>
<tr>
<td valign="bottom" colspan="3" align="center"><font face="Times New Roman" size="2">
<b>THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="right"><font face="Times New Roman" size="2">DETACH AND
 RETURN THIS PORTION ONLY</font></td>
</tr>
</table>
<br>
<div style="border:1px #000 solid;">
<table  border="0" cellpadding="0" cellspacing="0" width="96%" align="center">
<tr>
<td colspan="33"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" style="border-right:2px #000 solid; border-top:2px #000 solid;"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td style="border-right:2px #000 solid;"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="2%" rowspan="33"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="1%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="5%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="43%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>&#160;For&#160;</b></font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>&#160; Withhold &#160;</b></font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>&#160;For All&#160;</b></font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td rowspan="5" valign="top"><p align="justify"><font face="Times New Roman" size="2">To withhold authority to vote for any individual
nominee(s), mark &#147;For All Except&#148; and write the name(s)
of the nominee(s) on the line below.</font></p></td>
<td width="2%"  rowspan="33"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" colspan="3" align="left"><font face="Times New Roman" size="2">
<b>Vote on Directors</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>All</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>All</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Except
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Election of
 Directors</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Nominees:
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td  valign="bottom" nowrap align="left"><font face="Times New Roman" size="2">01)&#160;&#160;&#160;Patricia W. Chadwick</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">0</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">0</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">0</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="TIMES NEW ROMAN" size="1"><hr size="1" color="#000000" noshade></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" nowrap align="left"><font face="Times New Roman" size="2">02)&#160;&#160;&#160;Richard M. Galkin</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" nowrap align="left"><font face="Times New Roman" size="2">03)&#160;&#160;&#160;Stephen C. Isaacs</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td  valign="bottom" nowrap align="left"><font face="Times New Roman" size="2">04)&#160;&#160;&#160;David L. Meister</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>

<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2.&#160;&#160;</font></td>
<td valign="bottom" colspan="11" align="left"><font face="Times New Roman" size="2">
To transact such other business as may properly come before the meeting</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
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</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
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<b>The shares of stock represented by this Proxy will be voted in accordance with
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<b>If no specifications are made, such shares will be voted FOR the election of all
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<td width="30%" nowrap valign="bottom" align="left"><font face="Times New Roman" size="2">Signature [PLEASE SIGN WITHIN BOX]</font></td>
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<p align="center"><font face="Times New Roman" size="2"><b>Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:
</b><br>The Proxy Statement is available at www.proxyvote.com. </font></p>
<br>
<br>
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<td valign="bottom" align="right"><font face="Times New Roman" size="2">M37386-P15198</font></td>
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<td width="22%" valign="bottom" align="left"><font face="Times New Roman" size="2"><b>PREFERRED PROXY</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td width="22%" valign="bottom" align="right"><font face="Times New Roman" size="2"><b>PREFERRED PROXY</b></font></td>
<td width="2%"  rowspan="15"><font face="Times New Roman" size="1">&#160;</font></td>
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<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>ROYCE FOCUS TRUST, INC.</b></font></td>
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<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>6.00% CUMULATIVE PREFERRED STOCK</b></font></td>
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<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>745 FIFTH AVENUE</b></font></td>
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<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>NEW YORK, NEW YORK 10151</b></font></td>
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<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>This Proxy is solicited on behalf of the
Board of Directors.</b></font></td>
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<td valign="bottom" colspan="3"><div align="justify"><font face="Times New Roman" size="2">The undersigned hereby appoints Charles M. Royce and John E. Denneen, or either of them acting in absence of the other, as
Proxies, each with the power to appoint his substitute, and hereby authorizes them to represent and to vote, as designated on the
reverse, all shares of stock of the Fund held of record by the undersigned on July 14, 2011 at the Annual Meeting of Stockholders
of Royce Focus Trust, Inc. to be held on September 22, 2011, and at any adjournment thereof.
</font></div></td>
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<td valign="bottom" colspan="3" align="left"><font face="Times New Roman" size="2">
<b>
PLEASE VOTE, DATE AND SIGN ON REVERSE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.</b></font></td>
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<td valign="bottom" colspan="3"><div align="JUSTIFY"><font face="Times New Roman" size="2">Please sign exactly as your name(s) appear(s) on other side. When shares are held by joint tenants, both should sign. When signing
as attorney, executor, administrator, trustee or guardian, please give full title as such. If a corporation, please sign in full corporate
name by president or other authorized officer. If a partnership, please sign in partnership name by authorized person. </font></div></td>
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